Head to Head Survey: Alumina (OTCMKTS:AWCMY) and Iamgold (NYSE:IAG)

Iamgold (NYSE:IAG) and Alumina (OTCMKTS:AWCMY) are both mid-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Iamgold and Alumina”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iamgold	$3.41 billion	2.50	$664.40 million	$1.72	8.61
Alumina	$500,000.00	5,353.60	-$150.10 million	N/A	N/A

Iamgold has higher revenue and earnings than Alumina.

Volatility and Risk

Iamgold has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Alumina has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Iamgold and Alumina, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iamgold	0	3	5	1	2.78
Alumina	0	0	0	0	0.00

Iamgold presently has a consensus price target of $19.00, suggesting a potential upside of 28.26%. Given Iamgold’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Iamgold is more favorable than Alumina.

Profitability

This table compares Iamgold and Alumina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iamgold	29.49%	26.65%	18.54%
Alumina	N/A	N/A	N/A

Dividends

Iamgold pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Alumina pays an annual dividend of $0.16 per share and has a dividend yield of 4.3%. Iamgold pays out 14.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

47.1% of Iamgold shares are owned by institutional investors. 0.2% of Iamgold shares are owned by company insiders. Comparatively, 1.0% of Alumina shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Iamgold beats Alumina on 10 of the 15 factors compared between the two stocks.

About Iamgold

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.

About Alumina

Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. It operates bauxite mines and alumina refineries in Australia, Guinea, Brazil, Spain, and Saudi Arabia; and holds a 55% interest in the Portland aluminum smelter in Victoria, Australia. The company was formerly known as WMC Limited and changed its name to Alumina Limited in December 2002. Alumina Limited was incorporated in 1970 and is headquartered in Southbank, Australia.